Notable Players

A Deeper Look At This State

Regulatory Framework

As of February 2021, THC caps for medical cannabis are up for consideration this session. Efforts in previous years to implement caps hit roadblocks in the Senate, but Senate President Wilton Simpson now suggests there is a more sustained interest this year.

To be eligible for the initial 13 licenses, the state required applicants to be an established nursery in Florida for 30 years. Highly coveted, the licenses allowed up to 25 retail licenses and unlimited cultivation and manufacturing.

Vertical integration requires each license holder to cultivate all of their product; they cannot wholesale or purchase from other producers. Over time, the state Supreme Court ruled to expand to unlimited retail locations for each license. Most of these licenses were purchased by well-financed MSOs for amounts ranging from $20-65MM.

Early lawsuits compelled Florida to add additional licenses bringing the total to 22. Challenges to the constitutionally of medical integration have risen to the Supreme court, with the court expected to rule imminently.


Notable Market Activity

January 2021 | Cresco announces acquisition of Bluma Wellness Inc.

December 2020 | AYR announces acquisition of Liberty Health Services

November 2020 | Verano merges with AltMed

January 2019 | Acreage Holdings acquires Natures Way Nursery of Miami



What's the Play?

Florida is one of the most limited and unique license structures in the industry. With only 22 vertically integrated licenses for ~22MM people and a rapidly growing patient population (4K per week), Florida licenses are among the industry's most valuable.

These licenses are unique because they can only sell what they produce, requiring a robust vertical integration from farm to flame. Trulieve is the current market leader because of its massive retail and cultivation footprints, making them one of the few retailers able to consistently offer flower on the shelves.

There is a ballot initiative to create an adult-use market in 2022 that will be a boon for existing operators with the infrastructure to supply the exponential increase in demand. We anticipate capital to continue to flow into the Sunshine State to support healthy growth in patient counts and prepare for inevitable adult-use legislation.

Market Snapshot

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

594/273

By The Numbers

Population

~21.5MM

Medicinal Legalization

2014

Adult-Use Legalization

N/A

MMJ Patients

~486k

Monthly Revenue

~$100MM

Cultivation Cap

No Limit

Cultivation Licenses

22/22 (Issued/Limit)*

Retail Licenses

22/22 (Issued/Limit)*

Retail License Cap per Operator

No Limit*

Vertical Integration

Required

Delivery

Allowed

MMJ Qualifications

Less Restrictive

State Population / # Retail Licenses

MMJ Patients / # Retail Licenses

~20K

*22 vertically integrated licenses operate 293 dispensaries and each license can each open unlimited dispensaries.

Top Cultivators

Notable Market Activity

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Proprietary Sharp Capital Advisors data - compiled using various sources including state and local government data
Shit We Don't Know

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